Tech Innovations that could address Climate Change

Tech Innovations that could address Climate Change

( WEF, 9 JAN 2018)1. Nuclear Power- It should be safe and cost

effective - Fusion energy: commercially

viable nuclear - fusion-energy power plant

- Fusion produces zero GHGs, emitting only “Helium” 1

2. Transport• -Transport represents 23% of global

energy related CO2 emissions• Alternate ways of powering vehicles

such as with electricity/battery• We need more efficient battery and

more efficient battery charging technology

• Researchers claim breakthrough in “Alternative Materials” to power battery

• ( 1000-10,000 times more powerful)2

3. Food • About ¼ of global emissions come from

feeding the world’s 7 Billion People • There is “no way to produce enough

meat for 9 Billion people “ ( B Gates)• One alternative is to produce “Lab-

grown meat “that looks like and taste feels like the real thing

• One company has already created the first meat burger that is plant based ,made from vegetable protein found in” Peas”

3

4.(a) Manufacturing

• About 30 % emissions come from industry

• Carbon engineering : removing CO2 from air( one company already has demonstration plant) that is removing one ton of CO2from the air every day

• Direct air capture can remove far more CO2 per acre of footprint than trees & plants ( Company statement) 4

4(b).Carbon Capture and Storage ( CCS)• CCS has not yet proven at large scale

,although individual components of CCS ( capture, transport and sequestration ) are established technologies( IEA)

• About 12 CCS projects are operating globally (2015)

• Hope we will develop technologies and find commercial viable solutions for CCS, for coal –fired plants

5

5. Buildings

• Combined emissions from lighting, power, heating & cooling( office & home) contribute almost 20 % of global emissions

• Part of the answer is to build smart cities ( EE, renewable ,end use, technology adoption etc.)

6

Funding Commitments

• Members of the Breakthrough Energy Coalition (BEC)

• BEC includes JEFF BEZOS(Amazon),Jack Ma ( Ali baba), Richard Branson

• Committed to invest more than $ 1 Billion in New Technologies in the next 20 years

7

THANK YOU !!!

8

Responding to Development Priorities of Nepal: Relevance of Regional Experiences to Nepal

Bindu N. Lohani

9

AIT Day Symposium

HOTEL HIMALAYA

10 February 2017, Lalitpur , Nepal

10

Asia, 52%

North America,

13%

Latin America & Caribbean,

10%

Europe, 18%

Sub Saharan

Africa, 2%

Middle East & North

Africa, 3%Rest of

World, 2%

Asian Century Scenario: 2050GDP at market exchange rate (Trillion)

World 333Asia 174United States 38

GDP per capita at constant PPPWorld 37,300Asia 40,800United States 94,900

Asian century driven by Asia 7: India, Indonesia, Japan, Malaysia, PRC, Republic of Korea, and Thailand

projected to account for 90% of Asia’s growth between 2010 and 2050.

The Asian Century: Where is Nepal?

Source: ADB

Regional and Global Mega Trends :

What they mean to Nepal?

11

Global Mega Trends

12

1. Demographics: An aging and stable population2. Urbanization: Toward a predominantly urbanized world3. International trade: Increasingly intertwined economies worldwide4. Globalization of finance: Towards larger, more integrated financial

markets and massive private capital flows5. Transformation of the global economy: Steady rise of the

emerging economies6. Rise of a massive middle class: Towards societies driven by the

values and aspirations of the middle class7. Natural resources: Competition for finite natural resources8. Technological progress & development: Potential solutions to the

world’s evolving challenges9. Climate change: Time to act is now and to do so jointly10.Communications revolution: Fueling and satisfying rising aspirations

Source: Emerging Market Forum, 2015

Asia 2050: Asia Faces 6 MEGA Challenges

Avoiding the Middle Income Trap

Addressing Inequities and Disparities

Massive Urbanization

Disparities across Countries and Subregions

Global Warming and Climate Change

Global Competition for Finite Resources

13

REGIONAL

Source: ADB

Global Mega Trends

14







Selected Mega Trends: Relevance to Nepal

15

• Urbanization: Making cities livable, clean, green and smart( most people will live in cities in future)

• Demographic and social change: Inequality , access to opportunities ( education, health etc) , social protection and addressing the needs of different age groups

• Global climate change and environment and natural resources management (pollution, ecosystem protection, etc)

• Communication Revolution ( Use of technologies and ICT to change the way of life)

• Focus on middle class (to be a middle income country and take steps now to avoid the trap)

• Economic transformation, convergence and regional cooperation and

16

1000

6000

11000

16000

21000

26000

31000

36000

41000

46000

5 10 15 20 25 30 35 40

GN

I pe

r ca

pita

($,

Atla

s M

etho

d)

Singapore

Korea

Malaysia

Thailand

Indonesia

Philippines

PRC

India

Sri Lanka

Years since middle income was reached

High Income

Middle Income $12,600 per capita

Source: World Development Indicators

Middle Income Countries:India ThailandIndonesia PhilippinesPRC Sri LankaMalaysia

OCR Graduation: $7,115

ADF Graduation: $1,205

Learning From Asian Economic Growth and the Middle Income Trap

18

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Per Capita GDP ($ at PPP)

SingaporeKorea, Rep.Brunei DarussalamSri LankaPhilippines

Source: World Bank Website

Learning from Asia and the Middle Income Trap

Learning from the Stages of Development Followed by Asian Countries

19

Stage 1

Primary Agriculture

Stage 2

Simple manufacturing

(domestic)

Stage 3

Supply-chainmanufacturing,

SMEs, FDI

Stage 4

High-tech Industries

Stage 5

Creative and Innovative economies

(knowledge-based economy)

Technologyabsorption/technologyInternalized

Korea, Singapore

Middle Income Trap

Poor countries in Asia

Thailand, Vietnam

Cambodia

US, Japan, many OECD

countries

Nepal

20

STRUCTURAL TRANSFORMATION IS REQUIRED

Source: ADB

LEARNING from Asia’s Structural Transformation

• Agriculture is still the largest employer

– Over 700 million farm workers

• High manufacturing output shares but low manufacturing employment shares

• In many countries, transformation is from agriculture into (low-productivity) services.

• Diverse transformation, with varying:

– degrees of diversification, upgrading and deepening

– speeds

0

10

20

30

40

50

60

70 AGR

IND

SER

Nepal (2013):Agriculture 33%Industry 15%Services 52%

520

3550

6580

95

Man

ufac

turin

g ou

tput

(%

of G

DP

)

100025000

4900073000

97000

GDP per capita (constant 2000 US$)

Developing Asia Rest of the world

Manufacturing Output

515

2535

Man

ufac

turi

ng e

mpl

oym

ent (

% o

f tot

al)

100021000

4100061000



Manufacturing Employment

The Most Important Aspect of Structural Transformation is Industrialization

Source: ADB

A country is industralized if it achieves 18% (7-year moving average) for bothmanufacturing output and employment shares

The OECD Case

• The members of OECD industrialized long ago and have clearly deindustrialized during the last 3 decades or so.

• Their manufacturing output and employment shares peaked at about 25% during the 1970s —in some cases reaching 30% and above.

• The share then declined to about half of that.

OECD

Source: ADB

Asia

Source: ADB

Who Reached 18% (in Manufacturing)? Industrialization, De-industrialization

and Non-industrialization in Asia

27

….and de-industrialized

……and have not de-industrialized

did not industrialize

OUTPUT

Armenia, Azerbaijan, Hong Kong, China, Japan, Kyrgyzstan,

Mongolia, PRC, Taipei,China, Tajikistan,

Turkmenistan, Uzbekistan

Cambodia, Indonesia, Korea, Malaysia,

Pakistan, Philippines, Singapore, Sri Lanka,Thailand, Viet Nam

Afghanistan, Bangladesh, Georgia, India,

Kazakhstan, Lao PDR, Nepal, Papua New

Guinea

EMPLOYMENT

Azerbaijan, Hong Kong, China, Japan, Korea, Singapore,

Taipei,ChinaMalaysia, Sri Lanka

Armenia, Bangladesh, Cambodia, China, Georgia, India,

Indonesia, Kazakhstan, Kyrgyzstan, Mongolia,

Nepal, Pakistan, Papua New Guinea, Philippines, Tajikistan, Thailand, Viet

Nam Source: ADB

A Key Message is:

Challenge of reallocating labor to manufacturing and high productivity sectors – BECOMING A KNOWLEDGE-BASED ECONOMY WILL

HELP ACHIEVE THIS.

New Concept: City Based Development• Urban areas contribute > 80% of the global GDP• 600 cities contribute 60% of the global GDP – 50% of these

cities are in Asia• 65% of Asians are expected to live in cities by 2050 – these

cities are expected to contribute 70% of the global GDP• Young people aspire to work in cities – and are demanding

livable cities• The majority of GDP and population will be based in cities – as

such global megatrends such as climate change need to be dealt with at a city level

• Cities must be made livable, inclusive, smart, green and competitive

• Cities are their own economies and as such strategies for development could be focused on city level

BUILDING KNOWLEDGE-BASED ECONOMIES

30

LEAPFROGGING OPPORTUNITY: Where and How?

• Today's most technologically advanced economies are truly knowledge-based.

• Use of knowledge generation is key to wealth creation.

• Major OECD countries, where more than 50% of GDP are knowledge-related, exemplify this.

31

Knowledge-based Economies

Source: OECD. 1996. The Knowledge Economy.

What are some success stories in building knowledge-based

economies?

32

Success Stories: Korea• R&D as % of GDP: from 0.5% in 1965 to 2.5% in 1997 to 3.7%

in 2010.– Korea intends to increase this to 5.0% of GDP

• Super ministry combining science and technology and IT: Ministry of Science, ICT and Future Planning

• Government for R&D – Republic of Korea Advanced Institute of Science and Technology and

Korean Institute of Science and Technology – Government incentives for private sector – Fiscal and trade policies tax credits, accelerated depreciation, lowered

import tariffs)• Education: 35% of all Korean tertiary graduates earned degrees

in engineering, manufacturing or construction disciplines (1999)

33

Success Stories: Singapore• From labor-intensive growth to skill-intensive growth to

technology-intensive growth to knowledge and innovation economy-based growth

• R&D expenditure was 0.5% of GDP in the initial years and has steadily grown to 2.3% of GDP. – The country intends to increase it to 3.5% of GDP by 2015.

• Role of Government: Economic Development Board (EDB) and Agency for Science, Technology and Research (A*Star)

• Singapore emerged as a hub of services and further developed new high-growth services capabilities

34

Success Stories: Finland• 1950s: Finland was still an agriculture-based economy. • 1990s onward: country firmly established as an innovation-

based knowledge economy. • Broad-based and engaging approach to formulating the

education, research, and innovation policy agenda• 2010-2015: R&D to reach 4% of GDP by 2015• Support to the ICT sector used a multipronged approach linked

funding for R&D, – enhanced education and human capital development specifically for IT– support to state technology agencies and other institutions – central focus on ICT as a competitive sector for the economy

35

Planting Seed and Moving Towards Knowledge-

based EconomyFocus on the following:• Economic incentives & institutional regime• Effective & appropriate system of education

(higher) & skills• Effective information & communication

technology (ICT)• Effective R&D and Innovation

36Role of the Government is Critical

Investment in Knowledge is Critical

• Investment in R&D• Investment in higher education• Investment in IT• Investment in innovation• Use of new technology

37

Role of the Government is Critical

Thank You !!

38

Responding to Development Priorities of Nepal: Relevance of Regional Experiences to Nepal

Bindu N. Lohani

39

AIT Day Symposium

HOTEL HIMALAYA

10 February 2017, Lalitpur , Nepal

40

Asia, 52%

North America,

13%

Latin America & Caribbean,

10%

Europe, 18%

Sub Saharan

Africa, 2%

Middle East & North

Africa, 3%Rest of

World, 2%

Asian Century Scenario: 2050GDP at market exchange rate (Trillion)

World 333Asia 174United States 38

GDP per capita at constant PPPWorld 37,300Asia 40,800United States 94,900

Asian century driven by Asia 7: India, Indonesia, Japan, Malaysia, PRC, Republic of Korea, and Thailand

projected to account for 90% of Asia’s growth between 2010 and 2050.

The Asian Century: Where is Nepal?

Source: ADB

Regional and Global Mega Trends :

What they mean to Nepal?

41

Global Mega Trends

42







Asia 2050: Asia Faces 6 MEGA Challenges

Avoiding the Middle Income Trap

Addressing Inequities and Disparities

Massive Urbanization

Disparities across Countries and Subregions

Global Warming and Climate Change

Global Competition for Finite Resources

43

REGIONAL

Source: ADB

Global Mega Trends

44







Selected Mega Trends: Relevance to Nepal

45

• Urbanization: Making cities livable, clean, green and smart( most people will live in cities in future)

• Demographic and social change: Inequality , access to opportunities ( education, health etc) , social protection and addressing the needs of different age groups

• Global climate change and environment and natural resources management (pollution, ecosystem protection, etc)

• Communication Revolution ( Use of technologies and ICT to change the way of life)

• Focus on middle class (to be a middle income country and take steps now to avoid the trap)

• Economic transformation, convergence and regional cooperation and

1000

6000

11000

16000

21000

26000

31000

36000

41000

46000

5 10 15 20 25 30 35 40

GN

I pe

r ca

pita

($,

Atla

s M

etho

d)

Singapore

Korea

Malaysia

Thailand

Indonesia

Philippines

PRC

India

Sri Lanka

Years since middle income was reached

High Income

Middle Income $12,600 per capita

Source: World Development Indicators

Middle Income Countries:India ThailandIndonesia PhilippinesPRC Sri LankaMalaysia

OCR Graduation: $7,115

ADF Graduation: $1,205

Learning From Asian Economic Growth and the Middle Income Trap

47

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Per Capita GDP ($ at PPP)

SingaporeKorea, Rep.Brunei DarussalamSri LankaPhilippines

Source: World Bank Website

Learning from Asia and the Middle Income Trap

Learning from the Stages of Development Followed by Asian Countries

48

Stage 1

Primary Agriculture

Stage 2

Simple manufacturing

(domestic)

Stage 3

Supply-chainmanufacturing,

SMEs, FDI

Stage 4

High-tech Industries

Stage 5

Creative and Innovative economies

(knowledge-based economy)

Technologyabsorption/technologyInternalized

Korea, Singapore

Middle Income Trap

Poor countries in Asia

Thailand, Vietnam

Cambodia

US, Japan, many OECD

countries

Nepal

STRUCTURAL TRANSFORMATION IS REQUIRED

Source: ADB

LEARNING from Asia’s Structural Transformation

• Agriculture is still the largest employer

– Over 700 million farm workers

• High manufacturing output shares but low manufacturing employment shares

• In many countries, transformation is from agriculture into (low-productivity) services.

• Diverse transformation, with varying:

– degrees of diversification, upgrading and deepening

– speeds

0

10

20

30

40

50

60

70 AGR

IND

SER

Nepal (2013):Agriculture 33%Industry 15%Services 52%

520

3550

6580

95

Man

ufac

turin

g ou

tput

(%

of G

DP

)

100025000

4900073000

97000



Manufacturing Output

515

2535

Man

ufac

turi

ng e

mpl

oym

ent (

% o

f tot

al)

100021000

4100061000



Manufacturing Employment

The Most Important Aspect of Structural Transformation is Industrialization

Source: ADB

A country is industralized if it achieves 18% (7-year moving average) for bothmanufacturing output and employment shares

The OECD Case

• The members of OECD industrialized long ago and have clearly deindustrialized during the last 3 decades or so.

• Their manufacturing output and employment shares peaked at about 25% during the 1970s —in some cases reaching 30% and above.

• The share then declined to about half of that.

OECD

Source: ADB

Asia

Source: ADB

Who Reached 18% (in Manufacturing)? Industrialization, De-industrialization

and Non-industrialization in Asia

55

….and de-industrialized

……and have not de-industrialized

did not industrialize

OUTPUT

Armenia, Azerbaijan, Hong Kong, China, Japan, Kyrgyzstan,

Mongolia, PRC, Taipei,China, Tajikistan,

Turkmenistan, Uzbekistan

Cambodia, Indonesia, Korea, Malaysia,

Pakistan, Philippines, Singapore, Sri Lanka,Thailand, Viet Nam

Afghanistan, Bangladesh, Georgia, India,

Kazakhstan, Lao PDR, Nepal, Papua New

Guinea

EMPLOYMENT

Azerbaijan, Hong Kong, China, Japan, Korea, Singapore,

Taipei,ChinaMalaysia, Sri Lanka

Armenia, Bangladesh, Cambodia, China, Georgia, India,

Indonesia, Kazakhstan, Kyrgyzstan, Mongolia,

Nepal, Pakistan, Papua New Guinea, Philippines, Tajikistan, Thailand, Viet

Nam Source: ADB

A Key Message is:

Challenge of reallocating labor to manufacturing and high productivity sectors – BECOMING A KNOWLEDGE-BASED ECONOMY WILL

HELP ACHIEVE THIS.

New Concept: City Based Development• Urban areas contribute > 80% of the global GDP• 600 cities contribute 60% of the global GDP – 50% of these

cities are in Asia• 65% of Asians are expected to live in cities by 2050 – these

cities are expected to contribute 70% of the global GDP• Young people aspire to work in cities – and are demanding

livable cities• The majority of GDP and population will be based in cities – as

such global megatrends such as climate change need to be dealt with at a city level

• Cities must be made livable, inclusive, smart, green and competitive

• Cities are their own economies and as such strategies for development could be focused on city level

BUILDING KNOWLEDGE-BASED ECONOMIES

58

LEAPFROGGING OPPORTUNITY: Where and How?

• Today's most technologically advanced economies are truly knowledge-based.

• Use of knowledge generation is key to wealth creation.

• Major OECD countries, where more than 50% of GDP are knowledge-related, exemplify this.

59

Knowledge-based Economies

Source: OECD. 1996. The Knowledge Economy.

What are some success stories in building knowledge-based

economies?

60

Success Stories: Korea• R&D as % of GDP: from 0.5% in 1965 to 2.5% in 1997 to 3.7%

in 2010.– Korea intends to increase this to 5.0% of GDP

• Super ministry combining science and technology and IT: Ministry of Science, ICT and Future Planning

• Government for R&D – Republic of Korea Advanced Institute of Science and Technology and

Korean Institute of Science and Technology – Government incentives for private sector – Fiscal and trade policies tax credits, accelerated depreciation, lowered

import tariffs)• Education: 35% of all Korean tertiary graduates earned degrees

in engineering, manufacturing or construction disciplines (1999)

61

Success Stories: Singapore• From labor-intensive growth to skill-intensive growth to

technology-intensive growth to knowledge and innovation economy-based growth

• R&D expenditure was 0.5% of GDP in the initial years and has steadily grown to 2.3% of GDP. – The country intends to increase it to 3.5% of GDP by 2015.

• Role of Government: Economic Development Board (EDB) and Agency for Science, Technology and Research (A*Star)

• Singapore emerged as a hub of services and further developed new high-growth services capabilities

62

Success Stories: Finland• 1950s: Finland was still an agriculture-based economy. • 1990s onward: country firmly established as an innovation-

based knowledge economy. • Broad-based and engaging approach to formulating the

education, research, and innovation policy agenda• 2010-2015: R&D to reach 4% of GDP by 2015• Support to the ICT sector used a multipronged approach linked

funding for R&D, – enhanced education and human capital development specifically for IT– support to state technology agencies and other institutions – central focus on ICT as a competitive sector for the economy

63

Planting Seed and Moving Towards Knowledge-

based EconomyFocus on the following:• Economic incentives & institutional regime• Effective & appropriate system of education

(higher) & skills• Effective information & communication

technology (ICT)• Effective R&D and Innovation

64Role of the Government is Critical

Investment in Knowledge is Critical

• Investment in R&D• Investment in higher education• Investment in IT• Investment in innovation• Use of new technology

65

Role of the Government is Critical

Thank You !!

66

Documents

Tech Innovations that could address Climate Change